Gold falls by Rs 365 to trade near two-month low

Gold prices dipped by Rs 365 to finish at Rs 29,700 per 10 gm in Mumbai bullion market Wednesday.

Updated: Oct 02, 2013, 18:50 PM IST

Mumbai: Gold prices fell to trade near two- month low at the domestic bullion market Wednesday on heavy selling by stockists and investors amid mute local demand mainly driven by a uncertain global cues.

Silver also continued its speculative sell-off in the absence of industrial demand.

Standard gold of 99.5 percent purity dropped by Rs 365 to close at Rs 29,550 per 10 gm from Tuesday's closing level of Rs 29,915.

Pure gold of 99.9 percent purity also dipped by a similar margin to finish at Rs 29,700 per 10 gm from Rs 30,065.

Silver ready (.999 fineness) slid by Rs 335 to conclude at Rs 49,575 per kg as against Rs 49,910 previously.

At overseas, gold edged up after a three per cent fall on hectic liquidation in the previous session to a two-month low, as investors centred on the first US government shutdown in 17 years, weakening dollar.

In London, spot gold was bid up at USD 1,292.60 an ounce in early trade, while silver was bid higher at USD 21.17 an ounce.